Buy Suzlon Energy; target of Rs 76: ICICI Securities

ICICI Securities research report on Suzlon Energy

Suzlon ended FY25 on a high with a strong set of result; in Q4FY25, it reported revenue of INR 38bn (+73% YoY), EBITDA of INR 7bn (+94% YoY) and adjusted profit of INR 5.8bn (~2x YoY) - adjusted for deferred tax of INR 6bn. The strong performance was led by execution of 573MW of wind turbines (2.1x YoY). Its EBITDA margin also improved to 18.3% in Q4 (+200bps YoY); margin for FY25 came in at 17.1% (+130bps YoY) and the company guided for similar margin in FY26. Order inflow (OI) in Q4/FY25 was 0.6GW/3.65GW. As a result, order book (OB) swelled to ~5.6GW at end-May’25 (3.6x FY25 volumes). Outlook for the near to medium-term remains strong and Suzlon is poised well to cash-in on the opportunity with its 4.5GW capacity.

Outlook

Given the strong outlook on OI and execution growth in the medium term, we retain BUY with a revised TP of INR 76 (earlier INR 68), valuing the business at 40x FY27E earnings.